Exhibit 99.1
News release via Canada NewsWire, Calgary 403-269-7605
Attention Business Editors:
OPTI Canada Announces Pricing of First Lien Senior Secured Notes
TSX: OPC
CALGARY, Nov. 16 /CNW/ - OPTI Canada Inc ("OPTI" or the "Company")
announced today that it has entered into a definitive agreement to issue and
sell US$425 million face value of 9.0% First Lien Senior Secured Notes due
December 15, 2012 (the "Notes") at a price of 97.0%, resulting in a yield to
maturity of approximately 10.2%. The Notes have been resold through a
syndicate of investment banks to certain institutional investors pursuant to
applicable securities law exemptions. The closing of the Notes financing is
anticipated to occur November 20, 2009 and is subject to the finalization of
definitive documentation and other customary closing conditions.
Using the November 16, 2009, Bank of Canada noon exchange rate of
US$0.9560 (equal sign) C$1.00, the net proceeds to OPTI from the sale of the Notes will
be approximately C$419 million, after deducting certain fees and expenses
related to the transaction. The purpose of the private offering is to
establish sufficient liquidity through the ramp-up period of the Long Lake
Project and flexibility for the company to proceed with its previously
announced review of strategic alternatives. A portion of the net proceeds will
be used to repay OPTI's existing revolving credit facility, with the remainder
of the proceeds used to fund the Long Lake Project and for general corporate
purposes.
Moody's Investor Service (Moody's) and Standard and Poor's (S&P) have
rated the Notes as B2 and B+, respectively.
ABOUT OPTI
OPTI Canada Inc. is a Calgary, Alberta-based company with a 35% working
interest in the Long Lake Project, which is operated by Nexen Inc. The first
phase of the Project consists of 72,000 barrels per day of SAGD (steam
assisted gravity drainage) oil production integrated with an OPTI-operated
upgrading facility, using OPTI's proprietary OrCrudea process and commercially
available hydrocracking and gasification. Through gasification, this
configuration substantially reduces the exposure to and the need to purchase
natural gas. The Project is expected to produce 58,500 bbl/d of products,
primarily 39 degree API Premium Sweet Crude with low sulphur content, making
it a highly desirable refinery feedstock. OPTI's common shares trade on the
Toronto Stock Exchange under the symbol OPC.
This press release is not an offer of securities for sale in the United
States. Securities may not be offered or sold in the United States absent
registration or an exemption from registration. Any public offering of
securities to be made in the United States will be made by means of a
prospectus that may be obtained from OPTI and that will contain detailed
information about OPTI and management, as well as financial statements.
FORWARD LOOKING STATEMENTS
Certain statements contained herein are forward-looking statements,
including statements relating to: the closing date of the offering; the use of
proceeds received from the offering; OPTI's operations; anticipated financial
performance; business prospects, expansion plans and strategies; OPTI's plans
and expectations concerning the use and performance of the OrCrude(TM) process
and other related technologies; the cost, development and operation of the
Long Lake Project and OPTI's relationship with Nexen Inc. Forward-looking
information typically contains statements with words such as "anticipate,"
"estimate," "expect," "potential," "could" or similar words suggesting future
outcomes. Readers are cautioned not to place undue reliance on forward-looking
information because it is possible that expectations, predictions, forecasts,
projections and other forms of forward-looking information will not be
achieved by OPTI. By its nature, forward-looking information involves numerous
assumptions, inherent risks and uncertainties. A change in any one of these
factors could cause actual events or results to differ materially from those
projected in the forward-looking information. Although OPTI believes that the
expectations reflected in such forward-looking statements are reasonable, OPTI
can give no assurance that such expectations will prove to be correct.
Forward-looking statements are based on current expectations, estimates and
projections that involve a number of risks and uncertainties which could cause
actual results to differ materially from those anticipated by OPTI and
described in the forward-looking statements or information. The
forward-looking statements are based on a number of assumptions which may
prove to be incorrect. In addition to other assumptions identified herein, we
have made assumptions regarding, among other things: market costs and other
variables affecting operating costs of the Project; the ability of the Long
Lake joint venture partners to obtain equipment, services and supplies,
including labour, in a timely and cost-effective manner; the availability and
costs of financing; oil prices and market price for the PSC(TM) output of the
OrCrude(TM) Upgrader; foreign currency exchange rates and hedging risks;
government regulations and royalty regimes; the degree of risk that
governmental approvals may be delayed or withheld; other risks and
uncertainties described elsewhere in this document or in OPTI's other filings
with Canadian securities authorities.
Readers should be aware that the list of factors, risks and uncertainties
set forth above are not exhaustive. Readers should refer to OPTI's current
Annual Information Form, which is available at www.sedar.com, for a detailed
discussion of these factors, risks and uncertainties. The forward-looking
statements or information contained in this news release are made as of the
date hereof and OPTI undertakes no obligation to update publicly or revise any
forward-looking statements or information, whether as a result of new
information, future events or otherwise, unless so required by applicable laws
or regulatory policies.
%CIK: 0001177446
/For further information: OPTI Canada Inc., (403) 249-9425/
(OPC.)
CO: OPTI Canada Inc.
CNW 20:16e 16-NOV-09
